tv Varney Company FOX Business January 17, 2019 9:00am-12:00pm EST
>> thanks for great panel james freeman maddy thank you so much have a great day even. have a great day it everybody. "varney & company" begins everybody. stuart take tay away. >> it is a political bombshell is a crack in the in thes unity on the shutdown and the wall. house majority leader he says building wall is not an issue of morality that is the opposite of what speaker pelosi has been saying to her, the wall is immoral. but congressman goes on to say, obviously, walls work in some places. speaker pelosi has repeatedly said they don't work. st that's a crack. it is day 27 of the government shuttown, and speaker pelosi wants the president "state of the union" address schedule ised for january the 29th to be
delayed. despite her break, no sign yet of a negotiated settlement. to the market, the dow went up again yesterday closing around 24,200. but we will open just a little lower this morning. don't know how we'll close. but we'll be off about what 60, 70 points at the opening bell this is the problem today. morgan stanley, they came in with earnings a big disappointment that stock is down what 3.8% in very early going that's premarket now. it is a negative for the whole market. morgan stanley is an important company. netflix different story they report late this afternoon. there is intense interest in this one. netflix is the first of the big tech companies to report. the stock has been on a tear this week. and it is holding those gains in the premarket action today. 352 on netflix. how about this one. an electric ford f150 announced plans to go electric on most
popular vehicle in america. "varney & company" is about to begin. >> under the order of the house of today, i am now required to put the question, the question is -- that this house has no confidence in her majesty's government as many say i -- no -- declare the levee. >> those brits -- that's how you do it. >> is that how you do it? >> that's how you do it no confidence vote theresa may won by very about, very that are e row margin. the next question in long running saga what will european
union do about all of this any confessions at all? stay tuned folks this is a long running saga and no answer as to those questions. no impact, however, on that no competent vote on markets over here. futures down a little bit but not that much. it is really all about profits. and really a lot to do with with morgan stanley. big miss on their earnings report this morning. and it is now down 3.5%. john leifield fox news contradict tore with us now. what is morgan stanley profit report tell us about the financial system, and the economy? >> i think it tells us a lot about volatility it was reduction in trade you saw that with goldman sachs you saw that with with citi group and saw the fact pause of that there was less liquidity so citi group down 21%. i think what most important thing the financials are are telling us is what's going forward and there's a lot of trepidation going forward and coming out of the ceos from
other ceos and swraim me diamond and others talking about the worries about trade war and the uncertainty in the world. so it is going and looking forward to trading problems they've had in past quarter got if. all right john you have to look for netflix the report on the bell and go out on a limb and buy that stock before the earnings report today? >> no. absolutely not. i love this company. they have changed the way predictive announcement software is they give you six recommendations. they are best in the world at this. they also don't the have to pay or for pilots in a lot of cases. because they know a certain realm of project to work so they don't have to do a they are trading at 85 forward multiple compared to market right now about 15 that is an outrageous price right now. you've got a lot of competition coming to alliance specifically
disney with three talk movies last year people are not going to cancel because you raise a buck or two. but competition going forward this is priced at 85 multiple does worry me. >> got it. stay there john. just let me segue to another news item concerning netflix. netflix is paying actor steve carrell really big bucks to start in a new show, it has a trump angle. liz is here with more. [laughter] liz: space force. steve carrell and so he's -- reportedly getting paid more than $1 per episode wow this shows netflix is quickly now not just the movie producer. but a tv producer. and so you know they're teaming up with guys who created the office. this is more than cbs sold out for big bang teary but an enormous appetite for original content and debt watch the questions this afternoon on netflix earnings call because that debt offbalance sheet and
on swamps cash on balance sheet. so can they continue this march ahead to take to doll nate hollywood and the tv industry now? watch this space force making fun of presidents space force. right are? about prate funny. >> you used to be an accountant i can tell. >> i covered corporate, a scandal there. >> watch at 4:00 this afternoon melissa francis they'll be breaking the netflix profit numbers, on right -- after a the bell name of the show right here on fox business network 4 p.m. eastern today. let's get to the border wall battle. house majority leader contradicting speaker pelosi on the wall. listen to this. >> i don't think this is an issue of morality. a wall is immoral if it tries to imprison people who shouldn't be in prison. >> that wall that protects people is not immoral. i think issue is for works they work some places whether -- obviously, they work some places. j you knows that a direct
contradiction from steady to speaker pelosis that a split and crack in the unity of the democrats. math is with us with the american conservative union. it is a big split any way you slice it. do you have any idea why -- steady would do that at this time? >> yeah. i do stuart. he hates nancy pelosi's guts. j really? >> he's been fighting, fighting for decades they have a relationship and this is what did you want get covered a lot by the quote unquote mainstream media. there are a lot of fractionses in divisions in in new democratic majority in the house with a lot of these new members but even with these old bolds. a lot of people who are looking at nancy pelosi and saying, we should have a new leader and it is stupid politics to be against border security. >> so do you think that this will maybe -- that there's a crack with the in thes is that going to force the two sides together? does it bring a solution closer?
>> what it means is that eventually the way this thing -- moves to the next phase is that, senators have to win statewide. even democratic senators so they're going to have plenty of voters they need to court who believe that it makes just common sense to stop the illegal immigration in our southern border so you're going to have senators on democratic side you're gong say question of to get out of there. you're going to have republicans, obviously, going to be in a place where they say let's fund the barrier at the southern border and get out of this. and you're going to have new house members you know, there's a couple of does iten of these house members that won in very republicannish districts that trump carried. they can't look like they're for unregulated illegal immigration or else they will lose. >> i find this just fascinating these developments coming thick and fast. look, matt thanks for joining us. i didn't know that steady and speaker pelosi don't get along i did not know that. been around politics all of these years i didn't know.
>> sorry to be bearer of bad or good news -- stuart: whatever way you slice it now you've informed me. thank you very much indeed. by the way, president trump is tweeting this morning. short and sweet here it is left has become totally unhinged. they no longer or care what is right or for our country. got it. okay now let's take a look at apple big news there. they're cutting back on hiring after slowdown in iphone sales. come back in again john leifield should a physical investors is start to get worried now? >> no thaw shouldn't worry about this. look 700 million users according to fortune that right now have iphones you have about 1 president 3 billion users that have some type of apple products basically everybody that can afford iphone has got it so economy on scall have to catch up at some point so all you have really is replacement ratios for iphones or taking market share from samsung so i don't think this is necessarily a big concern. the biggest concern for appling
right now is transferring this to a service company that have 10 billion in service revenue in last quarterly report. they have 36 billion in iphone sales. they say that the ten billion will be 50 billion in services, within the next two years. if that's the case, then apple right now at 11 multiple trading forward is a screen by right here only concern really is this trade war because if the trade war escalates it can disrupt apple global supply chain and that's a real concern. you take away trade war this is a screening by. j you said it twice a screaming by on apple very interesting. okay. we hear you. >> unbelievable to hear 11 multiple a.m. son 6 and netflix 85 this thing is true value stock right now. >> very interesting john thanks very much indeed see you again, soon. check futures, how do we open market thursday morning? we're going to be down about 70 point. up big yesterday. down a fraction. we're down 70 this morning. big tech might have some issue with president trump's attorney
general no, nominee william bard might go after big company on aipght trust grounds watch out and government shutdown is 27th day. speaker pelosi wants the president to delay the state of the the union speech . she says there are concerns over security during the shutdown. maybe she wants to deny the president national platform for el ising his border wall. we'll have more on this. some sad news, vanguard group founder john died yesterday. mr. vogel was a knew community fund pioneer created first index fund and made wall street accessible to main street. he has his first heart attack early 30s. he had several more, and he had a heart transplant just a few years ago. his doctors had told him he wouldn't live to be 40. he died at the age of 89.
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prosecutors reportedly working on a criminal investigation into huawei. that sounds serious. >> china most if not most important company for itself so a criminal probe that advance stage according to wall street journal for allegedly steal robotic technology secrets out of t-mobile in order to test smartphone devices this story gets bigger. germany breaking news, is saying huawei get out of our 5g network there and lawmakers saying, there's fear it is that huawei solar panels means that it could get too far into our elective grid and pose problems there so this story is getting to be even bigger could it affect trade talks with the left? >> that's a big deal. >> seems to be factored into trade talks. not separate got it. let go to politic because this broke yesterday during our program. nancy pelosi sent a letter to president trump telling had him to delay the "state of the union address" because of security concerns during the shutdown.
congressman rob is with us now. republican from georgia -- well, you want to speculate on why speaker pelosi would make this demand? when the capitol hill police are fully fund secret service there and no security concern why is she doing this? >> you're exactly right planning for security it not start this week. it started a year ago, this week, and everything is absolutely prepared. i hate to speculate it is true we've seen story this is week that every time speaker pokes the president with a sharp stick her approval ratings go up. but this isn't a team for poking people with sticks. this is a time for promulgating a solution and wish she was coming back to negotiating table to solve shutdown instead of sending letters to poke president in the eye once again. >> what do you make of the apparent break with speaker pelosi? on fox news last night with bret baier he said, the issue on the wall is not about morality.
and he went on to say that walls do work. in some places. that's a conviction speaker pelosi. any idea why held say that at this time and what the impact of that statement will be? j well my hope would be he's floating one of those trial balloons all of america wants to see border security succeed all of america wants to see shutdown resolved you can't do that when you walk into negotiating room say it is my way with or highway and speaker pelosi has done so good for trying to find a patway forward because there has every within of us get paid not to make a point but to make a difference. and eve single one with of us wants to bring this across the finish line. looking for solution. >> is this what we're going to see for next two years from the house? object on decision to everything and anything the president proposes? >> the stuart as usual you went right to the heart of the of the issue. this is that defining moment for both sides. what is going to their stance or
next two years and in congress. i would hope it would be one of coming together over solutions. i was so encouraged by the white house and all of the different option it is they rolled out to try to put a stop to this shutdown. but -- it is very -- >> will you stand firm behind the president and back him up? >> to say that suggest the president needs to be backed up. the president on the side of the american people as we with all are in congress it has speaker who is being held hostage by new radical left we've seen that recognize ared by in thes in senate we see it recognized by democrats in the house we've never had this many -- radical leftist trying to drive speakers agenda and we're seeing the problem that causes here today. >> congressman thanks for joining us yes, sir. we're geng to open the market in 11 minutes time. how will we open it? down just a little. very small loss for the nasdaq and s&p. down about one thirled of one
>> the burnout rate among doctors are is alarmingbly high look at that number on your screen. 44% of medical professionals say they've considered leaving the field in the past year. because they're too stressed out doctor marc siegel is with us this morning. do you see that amongst your colleagues? >> that was 15,000 doctors that were surveyed by med -- very reputable survey that is true and number one reason because of the bureaucracy on the show here and number two reason is all a of the computerization because what they passed obamacare guess what they did simultaneously make everything electronic health records and that's takes us on average according to recent studies extrag hour or two a day we go home, instead of visiting our kid we're still documents on computer all of that overlay, and medical records keeping taking away from face time with our patients and from our own
personal time that's the issue here. >> that is fascinating i did not know that that was the cause of this. but look i have a little time here to get on to this. a new alzheimer's vaccine i believe it's showing some promise tell me does it work? >> so it is called ub311. but that's a fancy tomorrow it is out of a startup out of dublin called united neuroscience but 42 patients so far but what i find exciting about it doesn't show inflammation with the brawn but biggest problem or for alzheimer's in the past is they built up fladges in the brain so they were self-defeating this thing targets protein and a creates antibodies decreased buildup so far, the antibodies have been successful no ?ramtion and on scores and tests 42 people did a lot better they hadn't developed alzheimer's but a slower progress. the reason are i think it works
five seconds on this because there's a population in iceland that doesn't make protein because of a genetic difference. guess what, they don't make protein they don't get alzheimer's. so i think that there's a correlation here. if you look that protein you're going to block the disease . very exciting stuff. very early. >> just give me a rough timetable here how long before someone luke me could actually get there? >> three or four years picking up big manufactures now you see big companies getting involved in this a startup united near seeing big boys here. j bring it on dr. seeing it will thank you very much indeed. check the futures. going to be down about 0 point when opening bell rings in four and a half minutes. we'll take you there to wall street.
>> all right we've got what, 40 second to go and we'll open this market this thursday morning. we're expecting a modest loss, about 70, 0 maybe 09 points down for dow industrials a lesser decline for tech heavy nasdaq composite. let me take you back to yesterday. we've been on a roll recently been a very good year for stocks 2019. we closed yesterday at 24,200. another gain another triple tijt
gain now that was yesterday we've been in very nicely almost all asset classes have gone up. gold bond prices, stock prices, all up. you can come to an end and if so when. bang here we go up 9:30 eastern time off and running we're down 60, down 71 we're down 80. we're down -- 101. we're down 102. okay we've opened on downside 116 point lower for the dow. which takes us back to the 24,100 level so fitting on a triple digit loss as we speak. with a vast majority of the dow 30 in the red. left-hand side of the screen. how about the s&p 500? if the the dow is off .4%, the s&p is down 1 .3%. nasdaq down a fraction and nasdaq is down .3%. okay so we're down across the board. between a third and and a half percent. morgan stanley now there's a
problem for the market today. it came in with disappointing financial results and it is down 4%. back to 42 dollars a share more on that in a second. but netflix they report after the bell this afternoon. they've been on a tear recently in market action early going today. they are down a couple of bucks and they're at 348 again more on that coming up in a moment. who is with me joel shying man is here and so too is elizabeth macdonald, i think -- i think that the market has a completely forgotten about and discounted brexit. am i right? >> well i think we all realize that we were not going to have a yes they're having a brexit or no they're not having a brexit any team soon. right? that was so expected in plan that we were with going to be in this no man zone. and if i really think what market is looking at is the earnings right is the the future earnings and things look pretty good. >> all about profits i agree with she will a lot of market
reaction are has been priced in. i think people aren't spritessed with the way things are going. i think this is a great opportunity for companies to kind of get their way entrepreneurial companies to find their way through this mess. >> morgan stanly stock is down 4% what is morgan stan isly report tell us about financial system and the economy? >> well i think we're going to see things slow down although they're heating up and so last year was a record are year for m and a company like morgan stanley make big profit os then. i think we're goip to see activities already at record pace in 201 compared to where we were last year. it is only two weeks into it. so if i -- i think they stl have good -- earnings ahead for them. >> this is too big a problem. smg yeah because bear markets are are often proceeded by a downturn in financials and they were all bigger than downturn for overall a market now that they are popping up double digit since december. so morgan stanley it is not
quite outliar but gold man had a solid day and other banks. bank of america which i think is -- more of a sign of a healthy economy. because that's really looking at the retail. side of thing. >> to bank profit report they're not warning about state of the economy or state of the financial system or banking system this is not a major concern. got it. tack to me about netflix okay. you have a lot. go. >> so netflix a lot of people don't know this but since christmas a 52.8%. year it date it is number one stock number one stock the s&p 500, and the second -- number two stocks about 46% so a number one stock since christmas 50.8%. year to date 2019 for two weeks is not too bad. >> that is incredible. profit growth over 117% compound last three years revenue growth is 30% and r&d is 23% compound to last three year. only 16% off from the 2018 highs which was if in july.
but i think we're going to see good numbers today. >> okay would you buy netflix if >> i would. i would say -- >> before the profit report? >> get out there on a limb. a little because it is important to have all it can here and what i love about netflix is exposure to emerging markets i'm a fan of emerging markets with a huge population with a huge growing consumer and if they can get that market, i think they really succeed. >> one if not the most important media and entertainment companies on the planet. right. i think they're the most important. that will be my -- >> practically so many use it that's almost like a verb like google is a verb. netflix and yesterday on the program. i admitted that i had disconnected not -- >> did you really? the look of shock with what's recording thank you michelle. indeedlet get to apple. the news on them this morning is they're cutting become on hiring because of the slowdown in iphone sales.
now, we've been told that there are actually 153 they're cheap. very cheap. only 11 times what is it forward earnings? >> forward earnings at 15 so that's a discount. >> they're down this morning down a buck 25. with 130 billion in cash fact thatter they are having layoff that's a positive thing. they're recognizing that things are changing. >> would you buy it? >> i would buy it. i agree i think it is fairly cheap. i think it is a big company and not a mover and shaker like net flex but very large company and hard to make big change with such a large market cap. >> what is game changeer for apple saying service is go to story for the future. what is it? what is the big -- great device? ivetle that's it. also a couple of year ago i know understand this last week saying that fc was terrible then we have the sixth come on and everyone loved it who knows another year a new iphone that we all love. we just don't know. >> we don't. but at 11 times forward earnings -- you have to buy it. i have to say that's the rule aring.
no growth. microsoft interesting story. they're pledged 500 million dollars to affordable housing in the seattle area. john it seems to me big tech this is a defensive move. >> i don't see it moving needle. i would luke to see as investor if i was invest or tore i'm not but if i was i would like to see them putting money to r and dshes and other things. i realize it is a -- it's good for the image perhaps but i don't see it really moving company forward in a -- >> here's another reason why big tech might want to turn into defensive posture we've learned that president trump's attorney general nominee william barr he said yesterday at his hearing he may target big tech on antitrust grounds. there's another reason why big tech has to look over -- coming after you. >> seeing defensive crouch position and going about this issue too. >> i don't think antitrust rules will go very far in reigning in amazon -- >> who knows i know saying
microsoft back in 2000. not surprised. >> i remember that very well actually. >> you know, here's the clear and present danger listening immunity for content posted on site from class action suits that's what senator wariner wants. >> 7 minuteses into trading day we were down i think -- we were down 100 at one stage. now we're down 33 so we've come back rather nicely. quickly let's check the price of oil where are we this morning we're down 1% 51 dollars per barrel price of gas still right there at a national average of $2.24 per gallon. next case, ford motor company confirmed plans to build a fully electric f seers pickup truck. now there's news. gary our car guy is with us. they're going to come out with the regular gasoline powered trucks as well aren't they? >> and hybrid look if you're tesla or electric trucks startupses that's predicated on
fact ford doesn't make these yet this is might mare you see when demon from bird box shows up. f550 makes competitive electric vehicle, but it has spent a lot of money on it right now and you know republic people didn't think that it could make turbo charge truckses and sell them it did. and it would not be mortgage in f150 if it didn't think it could pull it off. harley-davidson had a electric version of the motor bike do you think ford f150 buyers like idea are of an electric vehicle? just doesn't seem to fit -- >> no i think it does more for trucks with harley it is a different image than the cruiser. with ford there's a lot of capability that electric brings you can make tow more, lug a lot more. the range is the issue. look even if it only sold 10% that's 100,000 trucks practically. so it is a huge market even if
it doesn't do a lot of them and that's about what it sells in des ling right now and that's a pretty successful seg the for ford. >> i have a problem with the whole electric arena here. that's recharge aing. i don't to take off on a long journey -- >> fleet vehicles with a charging station set up there. you know this is a concern ceo of toyota this week said he thinks there's a glut of electric vehicles in a couple of years market won't be that big and not going to hold in on it. as far as trucks are concerned if you have tesla saying hey we're going to get in there ford has to do this it owns it it has to protect itself. >> fast question would you buy an electric vehicle today? >> absolutely. >> you would? >> joel -- >> why not? >> sure. >> because you can't recharge it. >> distances i would know that i have one at home and again, i don't go far distances. >> priced right. absolutely.
>> one thing i like is the acceleration. those things take off. and trucks will too. >> i'll buy it. okay it is that time 9:40 eastern time michelle, joel thanks very much indeed gary we appreciate it. see you all again soon. check the big board come back significantly we were with down 100 now we're down 40. wildly popular video game, fortnite it's free to play but still raix ared in l bees of dollars last year. we'll have the numbers for in our next hour we're talking billions. bad news from housing market. the federal reserve says, student debt is preventing young people from buying their had first home. we have triewl ya top economist on that one, and she comes up next. shield℠ annuities from brighthouse financial
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call to learn more. 12 minutes in down 60 points on dow that is one quarter of one percent. "the wall street journal" reports that we work chief executive makes millions as a landlord to the company. we work now. that company we work rent out office space to start up companies. that's what they do. tell me more. >> this is quite a story adam newman krrk oh is also a one of his own companies biggest landlords. he owns the majority voting stake in we work so the question is, who knew about this? did board know about this and sign off on this because now it is putting 47 billion evaluation with of we work in jeopardy because you with can't have conflict of interest of this and you keapght go into public market to raise money and that's what, and not disclose this so it is a privately held company
we know that and one of the most valued companies that could come to market this will not stand and cannot ipo with a related party conflict of interest problem that exist right now. it is not being -- is it being disclosed who knew about it and it has to stop you can't have back scratching insider related party deal where is he makes money off a of leases it is that are guaranteed by the company he runs. >> you can't do that. and you've got to disclose it. you have to disclose it. it is shocking got to this point. interested to see how this work out what are they going to do? i don't know. let get to the housing market. because the federal reserve is saying that student debt we know is huge student debt hurting and actually preventing first time home buyers youngsters getting into the market. cheryl young is with us. senior economist with triewl ya, is that accurate cheryl that student debt is really hurting the housing market?
there's obstacles at trulia we asked how they felt about house markets and those 18 to 34-year-olds over quarter of them said student loan debt was main obstacle to have them enter the house market. one-third of them the people at that age group 18 to 34 whatever it was one-third? >> just over a quarter actually. [laughter] >> just over a quarter that's still a very significant proportion. now that's not going to get any better in the future? i can't see real improvement there. >> yeah. , i mean, student loan debt is as people continue to -- seek degree which is actually a good thing. if you want to buy a home right it is going to help your wages in the long run. but it is going to be a detriment and there are a number of other headwinds in house hadding market right now that aren't working in favor of history time home buyers or younger people and fact that it
is raising faster than wages so that is really -- a big impediment and not much in terms of inventory. so a lot of headwinds for young people and first time home buyers. >> is there a feeling among youngsters they don't want to buy a home, i understand that quite a few of them feel that way. i mean it is different for any generation first thing you wanted to do was buy that home pride of ownership own that they think and put your money into it. have times changed? >> you know, we actually did ask young people 18 to 34-year-olds do you plan on buying a home is buying home still part of your american dream? and actually 71% did say yes, yes they still want to buy a home but they're just doing it later they're waiting longer. they're having families a little later than everyone else. they're trying to get that -- you know down payment in order while still pay for student debt so american dream is still alive.
[laughter] right for young people it is just -- sort of taking a little bit longer. >> now, you're talking about headwinds here. student debts pricing faster than wages curl churl shift here. howers sou are these headwinds? >> they're quite serious. i mean l if we look at house market historically right inventory is really at historically low levels. you know so if go out there not much supply out there those home prices are really those rising home prices have eaten into affordability as well so you know if you looking at sort of the -- sort of average first time home buyer how much they have to spend on a mortgage if they buy a house that's after they have paid their down payment, it is almost you know, it's just over almost 40% which is -- much higher than what experts
say so on the the first home so it is difficult for a lot of people. >> you've missed out one head wind that is get the mortgage age going through the bureaucracy and a all of the electronic filing that you've got to do to get a mortgage it is like jumping through -- hoops or for heaven sake that's a real problem for me at least. cheryl, thank you very much for coming back us to. we have an audio problem last time we spoke to you but we fixed it and have you on the show today. thank you. >> thanks so much. sure thing. where are we on marketses? we are 18 minutes into the session. about half the dow 30 are up and about half are down and dow shows us a 65 point loss at this stage. maxine waters, yes she's taking the top spot on the powerful financial services committee and the hogs. she say, she's beginning to be keeping close eyes on the banks. question, how much damage could she tweal do? we're on it.
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to politics -- congresswoman andrea cortez joining maxine water on house financial services committee. cortez is a self-described socialist, and listen to what maxine waters said about the big banks yesterday. roll it. >> we'll be paying close attention to whether the natural relgt tores try to weaken these important reforms, and we will be keeping an eye on the big banks and their activities. but -- keeping an eye on big banks but she said i'll do to you what you did to us she wants revenge and doug pollster, do you think that that committee with aoc and maxine waters could it do any real damage to banks? >> i think it could and i think there's some other progressives on the committee and stuart, we want responsible oversight. with maxine waters xangd ya cortez, we're going to get
random inquiry ares about bank practices, heightened emphasis on diversity which is good but not exclusively run of a business. i worry that we are immature irresponsible and most of all, uninformed people regulating our large financial institutions which is not a good development. they couldn't certainly pass new rules are and wouldn't get through the senate and vetoed by the president is damage to bank and financial companies -- image rather actual damage to way they conduct business? >> they will ask questions potentially send subpoenas and i see that as a disruptive because i do not have a sense of the economic philosophy of cortez or maxine waters and i believe as your introduction suggested they're much closer to either
irritant or socialist than they are to supporters of the kind of -- e fro market capitalism i rt started. >> socialist you disagree request any of that? >> surprised to hear you come out with it. free market capitalist believe in redistribution of wealth. which is really what my problem is. i don't believe in redistribution. i believe in inclusive economic growth, and most of all a the free market. >> you're not a democrat. you -- you're not a democrat. democrat from a different era are i left you behind. well this democrat party today is all about that you've got it i want it. give it to me and i'm going to take it. regrettably too much of that for my taste, there are a whole host of moderates who are elected in the midwest to the house -- and a to those who represent
stand for advocate. i have a prayer. >> if you'll have me back i'll keep fighting you're going to be a republican at some point. yes, you are you're going to move to florida and -- going to repress with that. but you don't have to be a republican to have lower taxes there. >> that's true. [laughter] doug you're all right. thank you for joining us. appreciate it. big split, among in thes, house majority leader tenny hoyer says border walls can work and building one is not an issue of morality look that flies in the face of speak or pelosi i'll do editorial on that one, next. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches
wall. steny hoyer, he is the house majority leader. he told bret baier on fox news i don't think building a border wall is a issue of morality. speaker pelosi has repeatedly said the wall is immoral. hoyer went on to say whether it works. obvious he said walls work in some places. speaker pelosi repeatedly said walls don't work. that is a very obvious split. it comes at a time when the democratting really need to maintain unity. the government has been shut down for nearly four weeks. there is intense pressure to get the wall open again. it is a knock down tag out fight, and democrats need all the players rooting on their side. they surely don't want this division. steny hoyer is old guard democrat. he turns 80 this year. perhaps he is pushing back against the young radicals dragging the party way out to
the left. he is worried that perhaps a radical agenda won't fly in the 2020 election. perhaps he sense as shift in public mood, away from pelosi take no prisoners opposition to a wall. any way you look at it, steny hoyer has thrown doubt on the democrats unity. you could say he has cracked the wall. the second hour of "varney & company" is about to begins. ♪ stuart: thursday morning 10:00 eastern, mortgage rate time. the number? liz: 4.45%. that is pretty low. people are rushing to lock in. we're seeing mortgage applications surging by 13 1/2%. this is about ap nine-month low. refinancings pushing mortgage app volume higher.
what we're seeing possibly good spring home buying market as that median home price is now sticking around 258.5. you don't see prices surging higher. this is the free market correcting itself. november we saw rates pushing towards 5%. they're coming back down to where they were about a year ago. maybe right now the housing market, certainly homebuilder sentiment is on the rise. stuart: nine-month low. i will take it. >> there you go. stuart: go back to my editorial, my rant at top of the hour. ten know hoyer breaking with nancy pelosi over border wall. here is exactly what he said. roll the tape. >> this is not issue of morality. a wall is immoral if it tries to imprison people who shouldn't be in prison. a wall that protects people that
is not immoral. >> they work some places. >> obviously they work some places. stuart: i have to say any way you slice it that is the split at the highest levels of the democrat party. charles hurt, fox news contributor and "washington times" opinion editor. why do you think he did this, charles? >> without a doubt it is a shot across the bow against nancy pelosi. he realizes these are pretty far out positions that the nancy pelosi staked the party. we know, among the handful of people that actually have been around as long as nancy pelosi, is steny hoyer. steny hoyer you rightly point out, started out as blue dog democrat, a democrat that was reasonable, wanted to work with republicans on sensible solutions and things like that. but the party of course, and nancy pelosi has managed to stay ahead of the, ahead of the curve.
the party of course has been dragged so far to the left i think perhaps he sees an opening which is kind of considering, pretty late in the game for either of them but perhaps he sees an opening that, this crazy left-wing, you know, sanctuary city nonsense is going to doom the party and that we're looking at a quick two-year rerun of nancy pelosi as speaker and that when it ends and she gets thrown out and maybe he has shot taking over. stuart: i've been told by political people in the last hour that the two detest each other. i didn't know that. >> yeah. going back to her first ascension after dick gephardt retired, they went after one another. steny hoyer announced he had the votes to become the next minority leader and of course
lost which was a doubly embarrassing since he already guaranteed reporters that he had the votes. but what do you expect from a bunch politicians. you can't trust anything they say. even politicians can't trust what other politicians have to say. they have been at odds. i have to say over the years that nancy pelosi has been, has been leader the party and, you know there was a time when steny hoyer kind of held the line and represented those blue dog democrats but in this day and age, even he has been dragged pretty far to the left on a lot of those issues. so i don't, goodness knows, as you know, the number of blue dog democrats left, the number of democrats left in that caucus, represent anything sane, that could win in national election for example, those people don't exist in the party anymore. stuart: i think you're right and i have heard that from several
people. charles, i'm out of time. thanks very much as always for being with us. >> you bet. thanks a lot. stuart: yes, sir. >> markets still down about 50 points. very modest loss today. but we're at 24,150. big tech names, where are they this morning? we have a mixed bag, facebook, alphabet, microsoft on the upside. apple down. apple cutting back on hiring after a slowdown in iphone sales. apple's stock right now, 153. look at cbs. les moonves will fight the company's decision to withhold his 120 million-dollar severance package. that is according to several reports. cbs's stock is up, up 1 1/2%. now morgan stanley, their profit report fell short. that stock is down at nearly 6%. that is a major loss for a very important banking company. gary kaltbaum is here. kaltbaum capital management president.
what does morgan's report tell us about the financial sector and the economy? >> i look at the weight of all the evidence and most of the other financials came in pretty darn decently and more importantly reactions have been good. jpmorgan numbers missed and so was pnc. we'll see what happens the next couple days. i think financials are fine. interest rates are stable. the economy at least here is still pretty darn good. i'm not worried about morgan stanley. really not at all. stuart: tell me about netflix. they report profits after the bell today. would you take a flyer, get out there and buy it today before the profit report? >> heck no. look, you know, i am not carnac the magnificent. i have no idea what they will report, more importantly what the reaction is. and the stock is already up pretty darn big since the recent
low and we could get good news and sell off because of how strong the move is. i have one rule. i don't buy anything within three or four-days of earnings. i'm not smart enough to know what the reaction will be at that point in time. stuart: netflix stock is up by 50%, 50% just since christmas which i find astonishing. i think netflix is now the up-and-comer technology stock. it is going to play the roll that amazon or google or apple played in previous years, that is, a surging major technology company that is all american and just taking over the world. am i going too far? >> no. it has been there for a while. it is definitely moving up what i call in rank. for me it's a bellwether. you can call it a technology company and you know, and when they raise prices and if we see, they don't lose subscribers because of that, that tells you they have pricing power also.
i think that is why you saw the stock up strong on that day they have made the announcement. yeah, it is in my top five. amazon still for me is number one. apple less so, right now. google is in there. even the though the stock is not been a great performer but i believe it's a bellwether. facebook less so. look, as i have been telling you, it is a miracle what they have done throughout the years to change the company more towards the cloud. i've been telling you to keep the stock for a very long time and it is still performing very, very well. it is just not in the growth realm those other names because how big it is. once you get so gargantuan your growth rates have to slow to a certain extent but they're doing a marvelous job. the dude running the show is doing real well. stuart: i will not sell it because i don't want to pay the profits tax. >> no reason to sell it. stuart: gary kaltbaum, always on
the ball. great to see you, gary. >> thank you. stuart: by the way tune in 4:00 p.m. eastern today on the fox business network. connell mcshane and melissa francis will break down the netflix numbers on "after the bell." right here on the fox business network, 4:00 p.m. eastern today. we have a big hour coming up for you, president trump anding by his decision to withdraw troops from syria despite isis taking responsibility for an attack in syria that killed four americans. general yak keen said withdrawing from syria is a mistake from the beginning. he will join us next. congresswoman alexandria ocasio-cortez, and some fellow freshmen lawmakers went on a mission looking for senate majority leader mitch mcconnell. nowhere to be found. coming up, someone who says mcconnell laying low is a very good strategy. he will make his case. plus, more on that controversy ad from gillette. pete hegseth says, they're just another company making completely unnecessary social
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stuart: well you know, i've not seen much volatility today. we opened down 100 and came back and we've been sitting on a loss of 40, 50 points for much of the last 40 odd minutes so. liz: yeah. stuart: not much volatility today. liz: not at all shrugging down the shutdown. stuart: i kind of like that. liz: that is interesting. stuart: i like news. we're at the price of gold. don't think it reached $1300 an ounce. 1289 is the current quote. the price of oil backed away from $52 a barrel. it is at 51. the price of gas, really holding dead steady for about a week now. 224 is the national average.
now this. let's get to brexit. britain prime minister theresa may survived the no confidence vote, got it. and a key vote on her new brexit plan is scheduled for late they are month. come on in ashley webster in london. ash, i think the ball is not in the european union's court. are they going to offer any concessions to help theresa may? ashley: that is exactly right, stuart, because whatever the uk comes back there will have to be some give on the eu side. they up to now said, no, you got the best deal you're going to get. we know it is going nowhere. the one piece of leverage the uk has over eu, disorderly exit, something the eu doesn't want to see. this is a fame -- game of chicken pushing it up to the edge. the france already issued
no-deal exit preparations putting more money to prepare for and germans as well. i think it is up to the eu. whatever the uk comes back with, they will have to give. perhaps the key issue, they set an end date on the irish backstop that could get the whole thing through but it is up to them. they haven't exactly been very optimistic up to this point. stuart: as we always say with brexit, stay tuned because we don't have the final conclusion yet. that is a fact. all right, ash, great job over there in london. hope you can come back soon. ashley: thank you. stuart: see you on a. president trump will continue withdrawal of u.s. troops from syria, despite an attack from isis that killed at least four u.s. soldiers. retired general jack keane, four-star general, fox news strategic analyst is with us now. general, you don't like the withdrawal from syria but the president says he will keep it up. we're leaving syria. what do you say? >> you're absolutely right i
don't agree with that decision but he has modified the decision in the sense that the execution of that withdrawal, he set some conditions in place for the military to achieve. one is, the to finish isis. that has not taken place. and obviously this brutal attack is clear evidence of that. number two, protect the syrian kurds so that they're not at the whim of the turkish military to do what they want with them. and number three, deny iran the oil fields in the eastern part of syria and land bridge that runs all the way through southern syria that they want so badly to encroach on israel. those things will slow down the withdrawal and the president and the pentagon have not set a timetable for when the complete exit would be. stuart: i believe the president will be speaking to the pentagon or speaking to military people today about the syria situation. have i got that right? >> i don't know for for a fact
if he will. being so topical because we have lost our young people here. he will certainly acknowledge that loss publicly. maybe speak to his decision and reaffirm his decision that he fully does intend to w dow from syria. those conditions that i mentioned are he have crucial to having a positive end state here. stuart: now, talk to us, please, about the federal prosecutors who are reportedly launching a criminal investigation into china's huawei, which is china's most important and probably biggest technology company. is this espionage escalation between the two sides? >> yeah. when you hear huawei just think of china terms of, they're an extension of the chinese government. in other words, this is the communist party's execution to steal intellectual property, to act near knowledge achieve
economic dominance and achieve political dominance. huawei is one of those. when they to into a country, particularly emerging nation, and they give the country major loans to do infrastructure et cetera, the chinese insist, stuart, they insist huawei becomes their major technology company and also to use chinese telecom communications. why? then for the next generation or two, they own all the personal intelligence inside of that country. that is absolutely remarkable. it is happening in southeast asia. it is happening in africa. stuart: huawei is kicked out of many, many countries. they don't want them in there. have we got a new cold war on our hands? >> well it is not quite a cold war but it is certainly getting very close to it. you know the defense intelligence agency just came out with their report on china and they cite very clearly as
did the commission on national defense strategy which i was a member for a year the looming danger that china presents to u.s. interests, national security and the american people. they want to dominate the world and replace the united states. their military is fast and rapidly growing in capability. they have more ships now than the united states navy does. we have more capability but they are catching us very quickly. not only that. their military, so-called pla, peoples liberation army which encompasses all their services have got a lot of confidence in and hubris associated with these rapidly developing military capabilities. yes, china is a major threat to the united states. it is the major threat to the united states in terms of our long-term interests, stuart. stuart: got it. general keane, thanks so much for joining us. see you soon. >> good talking to you. stuart: yes, sir. we've been covering the growing
industry, gaming. "fortnite," that is the new game and craze. you won't believe how much it took in 2018. we'll give you the number in just a moment. as for the stock market, we're down 70 points on the dow. 24,100. we'll be right back. ♪ [ telephone rings ] [ client ] - hey maya. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.
fully-electric f-series pickup. that is the most popular vehicle in america for the past 30 years. they're going electric with the f-150, 250, 350. the f-series, going electric. let's get to gaming. you heard of "fortnite" i'm sure, the wildly popular, free to play online game. it raked in billions of dollars last year. liz will tell us how much it brought in and how it made all that money, how it brought in all the money if playing it is for free? liz: jaw-dropping. 2.4 billion for a free game. this dominates all other games including red dead redemption or "call of duty." how do they do it? you have to pay money for virtual items to play. you have to get virtual money. you get a battle pass. so it is astonishing how much, this is like a small s&p company, a midlevel s&p company right now. stuart: you have to cough up
dollars to enhance your ability to play the game? can play for free, but if you really want to play it, ante up dollars to go through it? liz: yeah. people are playing it like gangbusters, tens of millions of people a month. this is the most popular game in the united states, likely around the world right now. who knew, "fortnite." stuart: who knew. 2.4 billion. check netflix the report comes out late this afternoon. our next guest says tech stocks like like a buy here. should you buy netflix before the profit reports? we will ask that question. the stock is at 351 right now. congresswoman alexandria ocasio-cortez went looking for senate majority leader mitch mcconnell. couldn't find him. our next guest says, mcconnell's strategy of laying low is working. he will make his case. we're on it, after this. ♪ our grandparents checked their smartphones
♪ liz: oldie. stuart: [laughter]. the producers know that i like this one. liz: can dance to this one. stuart: i did, as a matter of fact, way back when. liz: we won't discuss that part. stuart: no, we won't. won't ever see me dance. liz: the first boy band. stuart: stop it liz, stop it right now. the beatles were not a boys band. world's greatest band, greatest musicians in the history of the universe, simple as that. liz: clarity. stuart: yes. not much volatility today. we've been down 40 points for best part of an hour. check out amazon. this is an important number. new research suggests that they have reached 100 million prime members. a, that is a big number.
b, it means really big, constant revenue. stay on big tech. look at netflix. they report after the closing bell this afternoon. jeff carbone with us, cornerstone wealth kind of a guy. jeff, would you be willing to take a flyer and buy netflix ahead of the earnings report? >> you know right now i think that's a little bit of a shot in the dark. expectations, they should be pretty good, however, i would say we've had -- they're going to increase their subscriber cost. not a bad thing should be for their bottom line. however i'm really going to be looking for how many subscribers they have and also with increase in their costs what kind of new streaming opportunities will they bring along, what new programing will come. they're getting a lot of competition from disney, at&t and google and others. so it is going to be interesting what the reports come in. stuart: you know what, jeff? the competition doesn't have
netflix's technical expertise. they can drill right down on the individual and suggest what you might want to watch. i don't think any of the other streaming services have got that. i think netflix is the clear winner here. >> they have, also they have got great content, a large subscriber list. they have also got the technology. i think you would call them, i think earlier you were talking about, they're a technology company. and i think with the dislocations that we've seen in the market in december, now it has recovered pretty strong, earlier you mentioned netflix is up 50% from the lows, i think there will be opportunities. volatility is not going away. i think we'll have opportunities to buy back a little more into netflix and some other fangs out there. technology is definitely one of my sector picks. stuart: i read your stuff. the u.s. consumer is in great shape. i will agree with that. so do you like retail stocks, if
so, which ones? >> yeah. some of the, i would say more on consumer discretionariry side. we can see that shift in the millenial, the millenials towards experiences so we do like some cruise lines. we do like some of the, you mentioned some of the amazon, some of the, some retail. probably more in the etf or mutual fund would be a bigger pick. i would say, we've been doing is, really trying to build the balance for 2019 with our clients between controlling the market optimism that we have right now versus the, being a little bit more defensive because we certainly had that big selloff which we thought was overdone in december. so i think it is finding that balance with high-quality stocks, larger companies. if you can find some with really nice dividend, not a bad thing to be owning right now. stuart: i love the dividend, if you can find me 6 or 7%, i will take it. thank you very much indeed,
jeff. we'll see you soon. thank you, sir. >> thank you. stuart: as we all know this is day 27 of the government shutdown. senate minority leader, majority leader, that would be mitch mcconnell, he has been keeping a low profile. freshman congresswoman alexandria ocasio-cortez went looking for him on capitol hill. we've got tape of that. watch this. >> he is not in the cloakroom. he is not in the capitol. he is not in the russell building. he is not on the floor of the senate and 800,000 people do not have their paychecks so where's mitch? stuart: take a look at the headline in the "wall street journal." mitch mcconnell rules. the senate majority leader's low-key shut down strategy is working. bill mcgurn wrote that. he is "the wall street journal" editorial kind of guy. welcome back, bill. >> thank you, stuart. stuart: you say, bill, i'm sorry mitch mcconnell, keep as low profile. stuart: aoc couldn't find him. >> right. stuart: that is successful strategy. make the case. >> first of all i admire a man who knows how to do nothing in
strategic way. he did that with merrick garland. president had authority to nominate the supreme court justice. the senate has no obligation to provide consent. we have kneel neil gorsuch on it. possibly trump elected making supreme court an issue. he is not going to send any bill up to president trump that trump won't sign, meaning it won't have the wall funding that he wants. the beauty of that is, first of all, you don't have the sham votes which the democrats need to say, senate has eight times passed a bill calling for the government to open. so in one swoop, mitch mcconnell is supporting his president, he is driving chuck schumer mad because chuck schumer would love these votes. that is what he wants to have, and he is protecting his own members having to go on the record in a sham vote. so they don't feel the pressure to reopen the government. he is saving them. he is protecting them from this
pressure. stuart: he is protecting the unity of the republicans. >> in the senate, right. stuart: giving the president his back. >> right. because the alternative is, if you, if they say, could pass a bill with some republican votes, went up to trump, they probably don't have enough. i don't think they have enough to do that. say he would agree to pass one of those things. trump would veto it. i don't think they have enough republicans to override. but then the caucus would be split. trump would be attacking those republicans who went against him. if you look at polls, some of the polls say who do you blame, trump and republicans or pelosi and the democrats, that is kind of misleading. if you break it down, who do you blame and president trump gets most of the blame for the shutdown, probably near half. the a third to a quarter blame nancy pelosi. when it says republicans only 4 to 5%. that means there is no pressure on these guys. they can go for a long -- and i think contrary to all the beltway wisdom which just thinks trump has to cave on this
because he called for the shutdown, i'm not sure mrs. pelosi's strategy of, i'm not willing to give you another nickel, no matter what you give me. i'm not sure that is a long-term solution for her. a lot of these federal workers live in democratic states. stuart: right. i'm also not sure that the democrats can maintain their unity. >> yes. stuart: you saw what steny hoyer said. >> right. stuart: he took issue with nancy pelosi, says, the wall is not a moral issue. >> right. stuart: nancy pelosi says, yes, it is. and he said walls can work. pelosi says no they can't. that is split among democrats. >> when you look at past prominent shutdowns starting with gingrich, boehner, obama, last year, schumer and trump, generally conceded that the congressional leader lost, right? a lot of people say that is because they called for it, whether gingrich or schumer,forth. but what it also shows the president's usually win. one reason for that is,
president trump has to maintain his line. it is not contingent on other people. it's a lot harder for someone leading a chamber in congress to maintain the unity of their party. they get all nervous. why mitch mcconnell is just insulating his guys from these pressures. so i just, i think he wields power by doing nothing. so effectively. he doesn't call attention to himself. this is one area where i actually agree with -- stuart: not a firebrand. >> with the new congresswoman from new york. she's right, he is the key to the shut down. stuart: fascinating. bill mcgurn, thank you very much. >> thank you. stuart: you will be hearing a lot about netflix today. yes they released their profits after the bell today but there is a news item here. netflix is paying actor steve carell really big bucks to star in a new comedy about space force. how much is he getting? liz: this is rattling the gated mansions in hollywood and tv
land. getting a million dollars, more than a million dollars per episode. this beats the record that cbs is paying out to "the big bang theory." it is space force. it will satter rise the space force. the tag line, the men and women who have to figure it out or something like that. stuart: something like that? liz: they're being funny about it. the guys who created "the office." steve carell. pretty funny guy. stuart: netflix has the money. they pay big bucks. they really do. thanks, liz. as we've been saying democrat majority leader in the house steny hoyer contradicting nancy pelosi about the border wall. says that border walls work in some places. he said that to bret baier. brett will be with us later in the sew. prime minister theresa may hanging on, surviving the no confidence vote barely. people in britain calling for a
second reverend up. what does the eu think about this and what will they do about it? i will talk to italy's deputy foreign minister. he is on the show. more after this. ♪ across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges.
continues he says we'll see more of them split from house speaker nancy pelosi and senator charles schumer. roll tape. >> senators have to win statewide, even democratic senators. they will have plenty of voters they need to court who believes it makes common sense to stop the illegal immigration at our southern border. so you will have senators on the democratic side saying we have to get out of this. you will have republicans obviously in a place, let's fund the barrier at the southern border and get out of this. and you are going to have a new house members, there is a couple dozen of these house numbers won in republicannish districts trump carried. they can't look like they're for --
stuart: we're down 49 as we speak. let's get to the migrant caravan, the new one that is making its way towards our southern border. 2,000 people strong as of now. pete hegseth is with us. "fox & friends weekend" co-host. pete, welcome back to the program. >> thanks for having me. stuart: i would thought as these caravans, plural, one after another, as they approach, i would have thought they would put a lot of pressure on the democrats to start doing something, telling us what are you going to do when they arrive at the border? >> they're doing this. putting their hands over the eyes. literally ignoring it. steny hoyer said walls can work,
they do work. mission of common sense. what nancy pelosi is arguing right now, they're immoral and expensive and ineffective is lie, lie, lie. it is not true. you can wish it away all you want. we have to cover things like this. these people coming need to know you're not going to get in. until the message gets sense, it's a physical message through a wall and process that works you will keep seeing caravans. now is the time to come, while it is open, while the policy hasn't changed, keep them coming. stuart: so far nancy pelosi has not retreated at all. she's still holding fast, not one dollar, not one dime for that wall. >> she has absolutely no political incentive to give an inch or give a dollar. she got precarious control over her caucus, just got elected speaker. the whole caucus is is moving left. all the energy and power is moving left. the base is left. half the senate is running for president, they're running left. there is no -- their whole campaigns are predicated on resisting trump.
what is trump's biggest issue? the wall. so if you give on that you look like you're cowering to trump. the whole thing, the whole house of cards for her falls apart. she can't move and won't move. neil: she can't move and won't move but she will lose the political argument because that intransigent position, eventually, it can't stand. it can't. it won't stand for it. >> i hope. i hope and think you're right. i do. although i don't think this gets litigated again in a complete way until 2020. i think democrats want to put this on the ballot. they want to appeal in identity politics, minority groups, tum's a racist, vote for us. trump at this point he will not get what he wants in totality, if you want the wall built, i need another mandate. i don't love it by i think this is the right fight. stuart: i see your point. i can't believe as these caravans won't approach we won't change the attitude. >> experts on the borders say if
only we have a wall we could prevent this, stop the drugs, illegal ports of entry. they don't hear it. stuart: before you leave it, hegseth, you tweeted a response to the controversial gillette ad. got it on the screen. yet another company making completely unnecessary social statements. why do they? virtue signal and avoid the pc mob of course. >> don't tell me how to raise my boys. i can raise them just find. i use your razor to shave my face. i don't want it from gillette. i don't need any preaching. corporate america is as bad as everywhere else. they're worried about "me too" movement. they're worried being the next company boycotted or next people that are shamed. they get out in front of it and start preaching at us. liz: i, for life of me, i'm trying to rack my brain. how is a beard toxic masculinity? >> it is not. if i want to be preached at i
will go to church. that is where i should be preached at, i went back and looked at some old gillette ads. look at them. tell me what is wrong with those dudes? look like great dads. they're at work. they like sports. what is wrong with that? since when did being a man become a sin in this country? it is serious. it blows my mind. stuart: i'm saying nothing. you're doing just fine. >> you now hoe you get triggered by something. liz: you were triggered. >> and i need a safe pace with your set. stuart: last time you were on the show you had not a shave. you had the yasser arafat stubbing look. >> i wanted to be less toxic today. that is why. stuart: hegseth, i do believe you're all right. >> thank you, sir. stuart: thank you, sir, appreciate it. now this, the justice department says all internet gambling is illegal. really? the super bowl is two weeks away. question, no one will be able to bet on it, online?
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stuart: same old, same old. down 40, 50 points. it has been that way for better part of last hour. we'll take it. not much volatility. how about this? the justice department now says all internet gambling, not just sports betting, is illegal. i want an opinion on this. come on in, dominic mansur. brag gaming ceo. i think you're based in britain, right? >> i'm personally based in britain. stuart: straighten me out, justice department, says internet gambling, illegal, can't do it. therefore can you not accept bets from americans on the super bowl at your operation in england? >> not true. what happened last week, monday this week, doj had a new opinion. so they revised their opinion. it is exactly that. only an opinion. not the force of law. stuart: that is irrelevant. you can take bets from americans
on the internet if you want to? >> yeah, exactly. it was specifically around the wire act. what it hasn't done, hasn't impacted sports betting. casino gaming online, but not the sports betting side of that. neil: it is the sports betting aspect i'm really interested in because i think there is a revolution taking place. you're in the middle of it, if i'm not mistaken? >> absolutely. stuart: you're telling me i can go into a sports bar in new jersey, for example, i can bet on the game and watch the game, place bets as the game is proceeding. >> yes. stuart: you're in the middle of that? >> yeah. the word is completely changed in the sports betting sense. and now 70% of all betting, the actual betting itself takes place during the game. not before the game. not on the outright event that will end the game. is it this team going to win or this team going to win, it is actually what is happening here and now. i'm on the mobil phone. watching game on screen in front of me.
i can say next five minutes, the ball will go out of play three times or something. bet, bet. stuart: is that -- >> absolutely. 70% of the volume of bets is going through like that now. stuart: that is a revolution. >> absolutely. stuart: a total revolution. are you part of it, your operation, your company, you're part of what is going on here in america? >> we're not in america right now. we're in three assets. one is media cycle sports. it has 26 million facebook fans. so that makes our site on facebook bigger than espn by way of example. so we earn that, which is built off the same model as what sky did in the u.k. sky and sky sports. eight, nine approximately, people watching sports and content. 10 years ago, why don't we launch a betting site. so they launch sky bet. off the back of sky bet they sold that to the styles group in middle of last year. for 5 1/2 billion u.s. stuart: five 1/2 billion dollars
u.s.? >> we're doing the same thing. our model is that we other than own a cycle, give me sport. i know 1.1 million people go to our site every single month also better single month in the uk, hello. so we're launching give me bet. stuart: you can bet on anything in england, can't you? >> yes, absolutely. stuart: what is the weather tomorrow. >> or what donald trump will say in the next 25 minutes. stuart: you can do that? >> there is novelty betting is really big thing. stuart: novelty bet something what it is called? >> yes. stuart: you do that? >> personally no. i stay on the right side of this. i'm too experienced. stuart: you're the bank. dominic, thank you very much for joining us today. i find that 70% of bets are placed during the game. that is a revelation. thank you. good stuff. now this, big techs, i think starting to play defense. president trump's pick for attorney general signaled that he might go after these companies on antitrust grounds. it is something we haven't seen before. my take on playing defense for
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to request this free guide. and learn about plans that could give you more benefits. call now. stuart: well, well, well, the date tag is playing defense. it has to. it is under attack. we're not used to this. for years apple, amazon, facebook, google, microsoft pulled an enormous amounts of money and they've expanded into a range of different industries and report astonishing growth rates and profits. talk about dominant. all that power has brought a reaction. the president's pick intends to focus antitrust enforcement on big tax in his confirmation hearing this week he said people wonder how such huge behemoths have taken shape under the nose of antitrust enforcers.
that sounds ominous. powerful forces want to break them up and use antitrust laws to do it. as we reported, the europeans taxing and investigating social networks. they are on the attack. so now comes the defense. microsoft will spend $500 million to support affordable housing in the seattle area. that's the response of the housing problem that big tech and its money have created. when facebook and google report profits later this month, watch for apologies and promises to behave better. they're accused of snooping into our lives, acting like big brother. they used to get positive publicity. now they're seen in a very different light. that tech will still be reporting big profits and will continue to break into and dominate other industries. but not the be looking over their shoulder worried that their opponents are gaining
ground. defense is the order of the day from big tech. haven't seen that before. the third hour of "varney & company" is about to begin. albright. the attack on defense. let's get reaction from dennis gartman, editor and ceo of the cartman letter. ron carson with the carson grew. you first, please. there's been a change in the public's attitude towards big tech and hence this display of going on defense. he think it will affect their stock prices. >> i don't think so. there is a great article. jeff bezos did an article i watched three times now and you can google it. it's about an hour and seven minutes. the best time you've ever spent listening to the man talk.
he talks specifically about what big businesses can do for society and to the degree of big business as you saw the announcement, contributing $500 million as long as you get big, you don't take advantage of it and that's always the worry. society is seeing some really good things that happen from big businesses. stuart: back to dennis. you don't invest in technology companies. you've been on this program many times, but do you think that this change in the public attitude towards the big tech and playing defense. do you think it affects the stock price? >> i listen to a professor and talk about the fact under
scrutiny for her monopoly purposes. when apple shares begin to start tumbling. i'm a believer in free markets. after a while, amazon, apple has gotten it to be a tad too large and will be under scrutiny for the next several years. i'm glad i'm not an investor in high tech. i would rather improper, steel, simple things. i understand them. apple is going to go ahead sprinkle a little sunshine in seattle with housing, but will it help them? i doubt it very much. >> the stock is way down. its profit report fell short of what was hoped for at lease. what is morgan stanley's profit report? what does that tell you about the financial industry and the economy? >> well, there's a lot in that
question. you know, maxine waters, the house share financial services, very little democrat. i know that. however, a lot of truth to what she talks about. companies like merrill lynch, wells fargo, morgan stanley, the list goes on. they have taken -- things have run amok. consumers are still being gouged and i'll get back to the morgan stanley comment. today i checked six basis points as their non-jumbo. companies are getting the spread of like 200 basis points. just imagine a consumer. $800,000 account and they made 2500 they give you 60 and they keep 2440 for themselves. seems a little ridiculous in that kind of equation is going on all over.
they demand more transparency. you're going to see these big brokerage banks will have a difficult time. and there's companies like galileo and they will allow disintermediation of these kinds of services to take a spread away. it's the beginning of the long run of difficulty for these institutions. >> a long run of difficulty for these institutions. what he said about? >> i think it's a difficult period of time. we watched over 25 years simply put as commission rates have fallen precipitously. i remember when i started in the early 1970s and hrc $100 a round turn. now you can get it done for 1 dollar a half or $2 in some instances could have been under pressure for a long period of time. they'll be under pressure as long as i'm alive.
>> which hopefully is many, many years. congresswoman maxine waters. she wants revenge on the banks. >> she's always good for a laugh. some of the things are so preposterous that time so you can scoff and say it gives me something once a month i can write about in a newsletter and have a good giggle. can she do damage? yes, i'm afraid she can. let us hope she won't and cooler heads prevail. the factious chairman of the committee assigned to be dismaying to say the very least. stuart: last word to you, ron. >> you know, i don't think so. we will have a lot of testimony and a lot of backdoor payments, hidden fees that consumers can i
get why she's upset. i'm upset about it in every consumer should be upset about it but it's not going to pass. there's going to be a lot of embarrassment out there, but i think it could we start to put a spotlight on areas consumers are being taken advantage of and they don't even realize it. i don't think ultimately she was going to make it down. unfortunately we've had everything that happens in waste will have these banks with similar practices. defines evidently aren't enough to deter them from continuing these practices. stuart: shall make a lot of news for us and that's a fact. thank you for joining us. >> let's look at individual stocks which are moving today. citigroup down a half a percent. they paid them in about 30% less than men. they want to do something about
it. apple cutting back on hiring because of slumping iphone sales are the stock is down a little. how about netflix as we walk up towards their earnings report late this afternoon. the stock is rarely changed. still at high-level three-point 51. you realize it is up 30% in 2019 alone. >> up 50 cents christmas eve. enormous rally. 4:00 this afternoon to an end to connell mcshane and melissa frances break in the netflix profit numbers on "after the bell" right here on fox business network at 4:00 eastern. nordstrom reported disappointing holiday sales. is this all part of the demise of the department stores story? a former ceo of toys "r" us. mr. stork knows a lot about retailing. a failing shopping mall in los angeles into office space.
is this solution on how to fill those ghost malls? take alike look at that in a moment. a political bombshell. a crushing the aggression the democrats unity on this touchdown -- shut down the wall. steny hoyer told fox news building the wall is not an issue of morality. the exact opposite of what speaker pelosi has been saying. to her the wall is immoral. she also wants the president's state of the union address to be delayed. right now is january 29th. remember to stay 27 of the government shutdown and despite the break there's still no sign of the deal. the third hour of "varney & company" rolls on. ♪
stuart: news on google. they're using a failing shopping mall in los angeles for office space. hillary bond joins us from the mall in los angeles. first of all, how much space are they actually going to take? >> 584,000 square feet. thus the renovation situated in west los angeles right between the four or five mai 10. right now there is only about 20 stories out of 150 in the mall that are still open and active. they had two major department stores, nordstrom and macy's leave the mall and that's contributed to less foot traffic coming in and really just the overall slow death of brick and mortar at least in this particular mall. google is high enough in saying we can do something with this and this will be our new big home in los angeles. 584,000 square foot to be
renovated within indoor and outdoor space. some renderings of what google is hoping to achieve, what it looks like when they call this home. you also have really the convenient fact euro for situated. it's supposed to be done by 2022 when will hope to see at least 1000 google employees walking around here what will probably look nothing like this. >> received a renderings right now on the screen. hillary, have you any idea what google is paying for this half a million square feet. >> no. and that is the big mystery. it's interesting they are disclosing the numbers because we do know for their announcement month ago further putting a billion dollars into that. i reached out to google to get a lot more detail about the specifics of this campus. i'm waiting to hear back from them. no idea how much they're going to pour into this property. stuart: it's a very interesting
use of saline mall property. very interesting indeed. hillary vaughn right in the middle of it. see you soon. >> i will stay on retail. no real bounce back today took a big hit just the other day. nordstrom at $45 a share. jpmorgan cut its price target from 51 to 41. weak holiday sales brought the stock down. joining us once again, the man who knows a lot about retail, jewel storch, former ceo at toys "r" us. you've got a hand that almost all the turnarounds in the retail industry. i won't go into all of them but welcome back. good to see you. nordstrom is struggling. why is it struggling? i would've thought of them is the top-of-the-line department store. what's the problem? >> they are. the class act of the department store segment. they're doing everything right.
it is not enough. their stories are in great condition. they invest in stores or their beautiful. it is the best in the industry. they have great internet. they have great data management and customer relationship management. and they have great title. merchandise is pretty good. but it's not enough. there's a hole in the bottom of the boat and the waters pouring in and out is that customers are deserting them and they are going to mass merchants off the mall and of course to e-commerce. >> is this the demise of the department store? >> well, i don't excel. it will still succeed. in order to be profitable, department store needs to learn how to make more money on the internet. you can't just say do all the right things in the bricks and mortar store makes it more experiential comment letter.
they've been doing that and it's not enough. you can see that in their results. there are high-end stores. only three tenths of 1% over the holiday period. that includes e-commerce which was up 18%. you don't have to know a lot about a lot about to present their physical bricks and mortar sharers are sharply negative during the season. you need to embrace the inevitable. you can't build a fancier stagecoach to prevent the advent of the automobile. you have to build a profitable e-commerce. in order to be profitable. >> if the malls are in a state of demise so to speak, what are we going to do with all the retail space when the department store's move out. google is taking a half-million square feet at the mall in los angeles that -- as one example. all across the country there's available space. what are we going to do with it? >> a mall, be mall, see mall.
they go out of business, doctors offices, insurance, please to get your nails filed, that thing. they're done. forget about them. some of them will be fantastic. you can keep them the way they are. that's for sure. google putting office space in there. you see a lot of residential apartment buildings along with streetscape in those kind of malls. they are still viable and they are putting and great restaurants, theaters, entertainment and successful concepts which attract millennialist who have not been going to the mall. >> i can't remember the last time i went to the mall. good man. thanks for joining us. appreciate it. more netflix news as we await their earnings later this afternoon. netflix announced a new series called space force. an obvious reference to president trump's planned six branch of the military. steve correll is going to get $1 million per episode to be the
elite actor in the space force series and the stock right now is right around $350 a share. "after the bell" profits are reportedly very big deal. tsa leaders now acknowledging that the financial stress of the shutdown is one of the main reasons employees are calling out sick. tsa says the callouts of force three major airports come up and tuck him in houston and miami to operate on the contingency plans to deal with distractions. a full update for you shortly. first, "the wall street journal" ranked airlines, did your favorite come out on top? we will tell you after this. ♪ amazon prime video is now on xfinity x1.
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simple. easy. awesome. stuart: he asked you to guess the top airline in the country according to "the wall street journal" it is delta. looking at things like on-time arrivals, number of flights canceled in how it handles customer complaints. number one delta, number two alaska rounded out the top five southwest, spirit and jetblue.
if you're looking to make a move this year, livability.com is out with a list of the top places to go to. number one, tallahassee, florida. the list looks at things like cost of living, education, career opportunities, even wetter. number two in santa fe, new mexico, las vegas, nevada. colorado and number five is oklahoma city. check this out. two divers spotted the world's largest great white shark ever recorded. they jumped in the water to take pictures. nine miles off the coast of hawaii. the shark is known as deep lou, weighs two and a half tons, scientists say that dean is 50 years old. there were similarities between the failed vote in the u.k. and the standoff over the border while here. voters approved politicians can't get it done.
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it'll turn positive. right now we are down 12 points. the dow is at just shy of 24,200. the s&p is down -- that is turned up four points they are. how about the nasdaq? we've got a turnaround there. do not act composite is up .18%, 12 points higher. they've all turned higher. how about this for a headline. it says gridlock is the new normal. dan hemminger wrote that and he joins us every thursday. you're comparing it to date over brexit with the debate over the border while here. the parallel between the two countries is gridlock. >> consider you have the government of the united tape in the united kingdom to the oldest democracies in the world with
sophisticated decisions and they're both at a standstill unable to function. brexit you know the details. the shutdown of government in washington of courses related to the fight over the wall. >> could you hold on a second? the president is now speaking. listen in, please. >> any logic in the united states anywhere, anytime, anyplace. as we all know, the best way to keep america safe is to keep america strong in october doing. joining us for today's presentation are great champions of missile defense and congress. senator dan sullivan, my friend. thank you very much. representatives mike turner. thank you, mike very much. joining us from the department of defense are acting deputy
secretary of defense, david norquist. thank you. secretary mark ester. secretary heather wilson. thank you. undersecretary of defense michael griffin, ellen board and john rood. general paul silva, thank you. thank you, general. general mark millay. thank you, mark. thank you. congratulations. very importantly, congratulations. general joseph link all and general james mcconville. thank you very much everybody, thank you. before presenting the result of our missile defense review, i want to take a moment to express my deepest condolences to the families of the brave american heroes who lay down their lives yesterday in selfless service to
our nation. these are great people. great, great people. we will never forget they are noble and immortal sacrifice. this morning i also would like to briefly address another matter of critical national security, the humanitarian and security crisis at our southern border. without a strong border, america's defenseless, vulnerable and day. i want to thank the military for helping us out during the big caravan. , but now you have more caravans storming in and around their way out. thousands and thousands of people. we do know where they are from, who they are, nothing. we need strong borders. we need strong borders interior walls. nothing else is going to work. everybody is saying it now.
just a question of time. this should have been done many years ago. it should have been done by other presidents. and it was them. just like many of the other things that could have been done years ago whether it's our negotiations with north korea. moving the embassy to jerusalem. so many things are supposed to have been done many years ago and they were. they wall has to be built. drugs flow and tremendous percentages of drugs coming into our country come from the southern border. we are not going to allow it to happen. and that is why our homeland security professionals have asked congress for a steel barrier between the ports of entry to fund more agents, beds, medical supplies and to close the ridiculous and dangerous
immigration loopholes that no country in the world has put us. the federal government remains shut down because congressional democrats refuse to approve orders security. we are going to have border security. it's going to be tight. it's going to be strong. we are going to let people into our country gladly. but they're going to come in legally. that includes for the farmers who need help and for others. but we are going to have powerful, strong border security. while many democrats in the house and senate would like to make a deal, speaker pelosi will not let them negotiate. the party has been hijacked by the open borders fringe within the party. the radical left becoming the
logical radical democrats. hopefully the lawmakers will step forward to do what is right for our country. and what is right for our country is border security at the strongest level. stop human hijacking. stop drugs. stop gangs. stop criminals. that's what we're going to do. that was my pledge and that's what were going to do. we are gathered together to outline the steps we must take to upgrade and modernize america's missile defense. so important. in a time of rapidly evolving threat, we must be certain that our defensive capabilities are unrivaled and unmatched anywhere in the world. although for foreign adversaries and rogue regimes are steadily enhancing their arsenals.
all over. they are getting bigger and stronger than we are getting bigger and stronger in every way. they are increasing their strike capability is in their focus developing long-range missiles. stuart: the president there. we showed him speaking about the border. he repeated that there is a crisis on the border. thousands of people are coming and these new caravan teesside. he said speaker pelosi won't let the democrats negotiate and the democrats have been taken over by radical open borders people. strong statement there from the president. he's not talking about missile defense if he brings in a headline on the issue you'll know them immediately. a few moments ago we were talking with dan hemminger about parallels between the brexit
debate in britain and the border debate over here. dan has concluded that there is gridlock on both sides of the atlantic here. >> while it relates very much to what the president was saying about the border. the border in the wall, whatever its merits is really a proxy for the larger issue here in the united state of immigration into the united states. we have not had a piece of immigration legislation in over 30 years in this country. the issue has become intractable. so many factions involved. people stop things from happening but they're not able to enable anything to happen. immigration is bob done in the political process to the point where we can't get anything done about it i'm not a perfect and the politics of the wall because ultimately you would have to make a deal relating to immigration policy in immigration policy like brexit simply stopped.
at a standstill. stuart: hold on for a second. italy's deputy foreign minister who is with us today in a here welcome to the program. let me talk to you about brexit. does the italian government want the bread to make european union or out? >> we respect the will of the people with the british people should believe the e.u. we want to protect the trade between our two countries and the people living in the u.k. this is the aim that we want to succeed and have a good deal to protect nationally. stuart: prime minister maeve play and we are down to the defeat of britain's parliament. she's now gone to the european union asking for processions. would they be prepared so that
there is a viable plan for the birds to leave. >> we have to have a good approach, called and concession or simply a better protection of our national interests. we cannot afford that is likely to come in the next quarter to have billions of trades simply vanishing. it is something that both sides cannot afford. >> i know that recently in italy, the italian police arrested more than a dozen people who reportedly helped smuggle terrorists into the country by having pose as migrants. you've got an open problem haven't you? >> i share what president trump just said.
it's fully shared by our government so we have to fight open borders concept. we are now down 90% from libya. we are trying to go to named on the problem and basically not anymore manage the flow of migrants, but simply stuart: i'm interrupting you because i find it interesting to hear europeans express some sympathy. we didn't think that president trump was very popular in europe. >> the reason for myself being here is to have better ties with the u.s. administration they are very close to what we have to do in europe but it's not just a number of member states
especially on migration and the creation of jobs and protection of national interest. each sovereign state has to protect its national interests. it's time for its people is fine for us. stuart: thank you indeed, guglielmo picchi. dan hemminger, thank you. i'm going to stay on the border wall. how about this. house majority leader steny hoyer was on our next guest program last night. becky and house speaker policy stance on the wall. roll that tape. >> i don't think this is an issue of unraveling. moral to imprison people who shouldn't be imprisoned. obviously at work some places. >> look who is here now.
bret baier himself. i was really surprised. he would contradict speaker pelosi so obviously, so overtly on your program. were you expecting not? >> i'd heard he doesn't like to talk about awol as being immoral. when he went down, the real place i want to get their is if walls and if democrats had a problem with the law or barrier, then is it their contention that the existing walls that exist along the border should be taken up and taken down. so walls work in some places. i think that is walking around in circles rhetorically that democrats have to start deal with. if you're not going to put a compromise on the table for anything, even shorter
$557 billion, then you have to explain why and what the border policy really is. stuart: just such an obvious light at the most senior ranks of the democratic party. why did steny hoyer do that at this particular time? do you have any idea? >> i think he realizes and he comes from a more conservative part of the democratic party. he represents maryland, which is true blue, that is a little more moderate obviously the nancy pelosi and he realizes some of the rhetoric has gotten out of hand. others have called awol other things and obviously the speaker called that moral. i think steny hoyer is the house majority leader wanted to rein that in and talk more about policy. what i couldn't get from him is what the compromise is going to be. stuart: there is no negotiation
scheduled in president trump just cannot ensure you heard it and said the democrat party has been hijacked by the open borders range. that's pretty strong stuff i'd say. >> very strong. the rhetoric they will use to get democrats back to the table. at some point the pendulum has to shift. yes, the president and republicans have been taking it on the chin in the polls when it comes to who was to blame. at some point here there is an okay, figure out how to get it open and it's on everybody. >> why do you think speaker pelosi tried to get the state of the union message delayed? >> as a political marker, knowing it would create a firestorm of coverage as it has. if i had to guess it's probably going to stay in where it is. of course i should point out that her colleague, brit hume and others, jonah goldberg, have
said maybe we should mail it in because the circumstance every year is unnecessary and seems like a monarchy at times. besides that group, i think there will be some, stuart, who believe this is all going to work itself out in this is a political ploy. stuart: we shall see. you're not supposed to say only time will tell, but it's accurate. by the way, i was watching last night. i almost fell off my chair when i heard denis hoyer say that. well done. now this. the tsa admits airport screeners are staying home because financial problems caused by the shutdown. the latest numbers show 6% didn't show up to work on tuesday. but the 65% jump in callouts from the same day last year. the airports have got a problem here. president trump talking about missile defense.
he says the u.s. will invest in a space-based missile defense technology. any headlines coming from the speech is now giving. yogurt and pronto. the market now looking at a very small loss for the dow. just nine points down. moments ago out of positive territory. now we are pretty much dead flat. we will be back after this. ♪
stuart: the president had something to say about the border situation a few minutes ago. number one, he says a wall has to be built. nothing else will work. he also said the far left come in the borders range as he called them had hijacked the democrat party. pretty strong stuff and the president this morning. he said we need strong barriers. we need. he laid it on pretty big. stuart: in the face of polls that say the president is to blame for the shut down. voters saying don't use the shut down to get the wall built. polls show movement that the
president, quinnipiac majority say it is a border security crisis in way of freshmen in the house breaking away defiantly for nancy defiantly for nancy pelosi saying do a deal. get a deal done to get moving on negotiating. stuart: and as we've reported, the old god, steny hoyer split with speaker pelosi and said there's nothing moral about building the wall and walls to actually work. i'll make a bold prediction. the longer this thing goes on in the more intransigent speaker pelosi has not given you a dime or the more intransigent she has come of them are public opinion will swing away from democrat centaurs president. stuart: think about that. you wouldn't give a dollar even if you had a daca deal. they agreed a 25 billion for border security in january of last year. now we are talking five to 6 billion. it seems untenable for a
position right now. stuart: $4 trillion budget, 5 billion is not a whole lot of money. $5 billion would open up the government again, ms. pelosi should do it. stuart: the voters are sick of it and want to move on. stuart: so let's move on. corporate news for you. les moonves, now fighting for his $120 million severance package. he's challenging to deny him by name because he violated company policy. this is really a public relations nightmare for cbs but not affecting the stock. >> i was in his arbitration was in his exit package. we have some fortnight stories for you. the videogame. number one, researchers say a security flaw put millions of users out risk of a cyberattack. the floor allowed hackers to
access user accounts as well as the player and his friends. the creator says it has fixed a security flaw. point number two, their popularity shows no sign of slowing down. fortnight rod into $.5 billion last year. the game is technically free. free to play. but it brings in billions through the sale of virtual items that you need to play the game well. $2.5 billion. a lot of money. how about amazon. new research shows it has reached 100 million crime members. that is a huge number. as i understand that they pay $119 per year. stuart: was really interesting is they spend $1400 on average on the site. that is more than double what nonprime members spent. this is really rocketing ahead that it has the $100 million
mark already. people are realizing how easy it is to shop at amazon and get it done. stuart: i'm no good at math but i don't have a calculator handy, but if you had 100 million people paying $119 per year -- liz: that saves a lot of money. stuart: i do want to get stuck in bad arithmetic here. it is surely moving into the billions and billions of dollars. i'll leave it there. new green gas golf shoes. they are made on the artificial grass. very versions of nike's classic air max shoes. this will go on sale as early as next month. the cost is about $140 if you're a golfer. you met with a look at them. nike has been coming out with some interesting designs. yesterday we showed you their new smart sneakers called the nike adapts.
-- you can track your data. not sure i like that by the way. it is up a bit and $78 per share. let me take you to the top market briefly. down about 100 points after the opening bell this morning. now we've struggle almost a breakeven. the dow was off 11 points. the big story on the market comes later this afternoon when netflix will be the first of the big tech companies to release its earnings reports. that is a go-go stock of 50% since christmas eve. an astonishing gain. you've got to watch fox business at 4:00 this afternoon because we will be breaking the netflix numbers at that point. more "varney" after this. ♪
stuart: i got to say i'm a little bit surprised of the stock market in 2019 has done extremely well. it wasn't supposed to. we were looking toward as recession, lizzie. liz: yeah. stuart: brexit debate would be upsetting everybody. liz: you would think the market would be falling out of bed that we would go into recession. the market is not pricing in recession when you have the financials coming in as strong as they have been. chutes and ladders not coming out of the market. nbr, official economic research, official referees whether we're going into recession. says the government shutdown will not have major impact on the economy. stuart: day 27 today of the shutdown. all the stories in the media, how it is really hurting.
yes it is hurting some people, no question about it, no question it is. liz: i agree. stuart: it is not hurting overall economy that much. the market is paying no attention to it at all at this point. the way it looks to me. our time is up. neil cavuto. it is yours. stuart: people spending $1400 on "fortnite." how about that? stuart: wow. stuart: that is a good economy there. stuart: it is. stuart: thank you very much, stuart. we're focusing on all of the above including fortnight. when you spend that kind of money on a game, you're not too fixated on the government shut down what that will do to you or imperil the economy or mixed earnings reports will imperil the economy or 27 days after shutdown shows no sign of easing up will imperil the economy. or postponed or canceled state of the union address will imperil the economy. see where i'm going here. connecting all